T h e E c o n o m ic F o u n d a t io n s o f P o l it ic a l C o n f l ic t in B a l i , 1950-1965 Geoffrey Robinson Introduction Surveys of modem Balinese history are curiously silent on the dramatic economic changes which occurred in the period 1950 to 1965.* 1 They provide virtually no detailed de­ scription or analysis of the poverty, hunger, and spiralling inflation which gripped Bali during these years. Moreover, in contrast to the scholarly energy devoted to such issues in Java, we do not yet have any meaningful analysis of changing rural relations of production in Bali, of the dynamics of land reform, or their implications for political conflict there.2 The gap in our knowledge is, in part, the result of the continued dominance of a tradition in the study of Bali which emphasizes the significance of culturally specific bases of affiliation rather than those of class. This approach has, I think, helped to obscure the nature of politi­ cal conflict in this period, and has seriously impaired attempts to understand the internecine violence of 1965/66.3 This article is a revised version of a chapter from my PhD dissertation, 'The Politics of Violence in Modern Bali, 1882-1966," PhD dissertation, Cornell University, 1992. In order to protect relatives and friends, only the initials of alleged PKI sympathizers or members are given here. 1 Virtually the only work which treats Bali's economy during these years in any depth is I Gusti Gde Raka, Monografi Pulau Bali (Jakarta: Djawatan Pertanian Rakjat, 1955). More recent economic surveys of Bali pay scant attention to the early post-independence period. See, for example, I.K.G. Bendesa and I. M. Sukarsa, "An Eco­ nomic Survey of Bali," Bulletin of Indonesian Economic Studies 16, 2 (July 1980); R. Daroesman, "An Economic Sur­ vey of Bali," Bulletin of Indonesian Economic Studies 9,3 (November 1973); and Mark Poffenberger and Mary Zurbuchen, 'The Economics of Village Bali: Three Perspectives," Economic Development and Cultural Change 29 (October 1983). Of the small number of general works which deal with the period, most refer only in passing to economic issues. 2 On rural class relations in Java see, for example: W. F. Wertheim, "From Aliran to Class Struggle in the Coun­ tryside of Java," Pacific Viewpoint 10 (1969); Rex Mortimer, "Class, Social Cleavage and Indonesian Commu­ nism," Indonesia 8 (October 1969): 1-20; and idem, The Indonesian Communist Party and Land Reform, 1959-1965 (Clayton, Victoria: Centre for Southeast Asian Studies, Monash University, 1972); and Benjamin White, "Rural Resistance After the Destruction of a Peasant Movement: Java Since 1966" (photocopy), April 1984. 3 Political and methodological difficulties have also played their part. The disappearance of vast quantities of written documents in the aftermath of 1965, and the tragic death of tens of thousands of suspected Communists 60 Geoffrey Robinson This article seeks to examine the common assumption that economic factors and class have not been important bases of political affiliation and conflict in Bali. It does so by focusing on three related dimensions of the problem. First, it outlines the relationship be­ tween economic conditions and patterns of political mobilization, describing how the hyper­ inflation of the early 1960s, together with a series of natural catastrophes, helped to shift political attitudes and to accelerate political conflict in the final years of the Old Order. Second, it analyzes the role of the local state apparatus and political party networks in shaping Bali's economy and thereby also in structuring political relations in Bali. It shows how local state and party involvement in the distribution of economic resources from the center, the creation of a Balinese capitalist class, and the implementation of land reform, en­ couraged political conflict among Balinese, and increasingly along class lines, rather than focusing attention against the center. Finally, the article examines explicitly the relative sig­ nificance of class and other socio-cultural groupings as bases of political affiliation and con­ flict. It argues that class became increasingly salient in Bali after 1963 when the PKI began to pursue a more militant class-based strategy in the implementation of land reform. Economic Crisis and Political Mobilization In a political report from July 1950 the Dutch Bali-expert, Ch.J. Grader, argued that heightened expectations generated by the National Revolution had made economic devel­ opment one of the most pressing political issues facing the new government in Bali.4 Great expectations, however, could scarcely be met in the first years of Indonesian independence. Serious crop failures (rice and coffee) in 1949/50, shortages of imported basic necessities (cloth, sugar, rice), and a lack of confidence in the Republic's paper currency during the Revolution, had contributed to spiralling inflation in Bali.5 In June 1950, the price of rice in Singaraja was Rp. 1.75/kg, already higher than in other parts of the country.6 By February 1951, it had risen to Rp. 2.35/kg and the shops were virtually empty. In the first week of 1952, the price had jumped once again to Rp. 3.50/kg.,7 while the average wage for a laborer in Bali alone, make the period 1950-1965 very difficult to document or analyze. The problem is compounded by the fact that it remains a serious crime in Indonesia to have any link with the Communist Party (PKI), so that few people wish to discuss the period openly, still less to admit any deep knowledge of the party. Writing an account of this period, therefore, requires the reconstruction of events on the basis of fragments of information from interviews, national and local newspapers, and occasional government documents. For further details of the coup and its aftermath in Bali, see Robinson, 'The Politics of Violence in Modern Bali," ch. 12, and Robert Cribb, ed., The Indonesian Killings of 1965-1966: Studies from Java and Bali (Clayton, Vic: Monash Papers on Southeast Asia no. 21,1990). 4 He wrote of " ... the necessity of taking measures in the interest of economic development, given that the revo­ lutionary period has created great expectations in this area." Ch. J. Grader, "Bali, Tournee-Aantekeningen, Juli 1950," Collectie Korn, OR 435-23 (Koninklijk Instituut voor Taal-, Land- en Volkenkunde, Leiden [hereafter KITLV]). 5 Grader wrote: "That the cost of living is among the highest in all of Indonesia is in good part a result of the fact that there are insufficient imports compared to the high spending power made possible by exports." In "Persatuan Tenun Indonesia," Collectie Korn, OR 435-23, KITLV. Inflation seems to have been worsened by the sudden increase in the silver money supply (f 30 million) with the Dutch reoccupation of Bali in 1946. Ch. J. Grader, "Credietbehoefte ten Plattelande," Collectie Korn, OR 435-23, KITLV. The problem was compounded by the discrepancy in the exchange value of paper and silver currency; the price of goods if bought with paper cur­ rency was three or four times the price with payment in silver coin. 6 Letter from Grader to Korn, June 18,1950, Collectie Korn, OR 435-59, KITLV. 7 "Bali Gontjang Karena Beras," Suara Rakjat, January 8,1952. Economic Foundations of Political Conflict 61 in the town remained at Rp. 1.50/day.8 Particularly for those without land of their own, and for wage employees in the towns, basic necessities became increasingly difficult to obtain.9 It was hardly surprising, under conditions such as these, that there were dramatic in­ creases in thefts of basic foodstuffs—especially rice and cassava—and in a variety of other economic crimes. The connection was not lost on contemporary observers. One newspaper article commented: In these times the people of Bali are distraught on account of the increasingly brazen acts of banditry and theft. The disruption of the peace is primarily related to the increase in the cost of food. Not simply rice, but other foods as well have all increased in price.10 The shortages were reportedly worst in Buleleng—which traditionally relied for much of its rice on Tabanan—and it was in Buleleng that the robberies and the banditry were most serious. Economic difficulties also led to a quickening of political mobilization in Buleleng, where there already existed a relatively large and militant body of migrant agricultural laborers—employed principally in coffee plantations—and unionized urban workers. Singa- raja was in fact the site of Bali's first modem industrial action, in 1950. Harbor workers of the transport company ESSER stayed out on strike in Buleleng for nearly two months, de­ manding wage hikes in line with inflation. The company refused to raise wages above those set for Surabaya, where the cost of living at this time was considerably lower. These condi­ tions helped leftist political parties and organizations, like IRMI (Ikatan Rakjat Murba Indonesia) and Partai Bumh, develop an early following in Buleleng.11 Prices on essential goods were held in check by local government controls through the mid-1950s, but the problems of inflation and the shortage of basic necessities surfaced once again after 1956. In 1957, for example, a combination of poor local harvests, bottlenecks in the distribution of imported stocks, and speculation, gave rise to sudden price increases for rice, from a normal rate of Rp. 3.50/kg. to Rp. 7.50/kg.12 It was only in the 1960s, however, that inflation reached crisis proportions, and began to have clear social and political ramifi­ cations throughout the island (see Table 1). Hyper-inflation affected both the urban and rural population, though in slightly different ways.